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Jun 30
Dayforce Q2 2025 Earnings Report
Dayforce reported strong Q2 2025 results with notable growth in recurring revenue and a return to profitability.
Key Takeaways
Dayforce delivered solid performance in Q2 2025, achieving strong growth in Dayforce recurring revenue, improved operating profit, and positive net income.
Total revenue reached $464.7 million, with Dayforce recurring revenue at $315.5 million.
Net income turned positive at $21.3 million compared to a loss last year.
Adjusted EPS was $0.61, up from $0.48 last year.
Free cash flow for the quarter totaled $87.1 million.
Dayforce
Dayforce
Dayforce Revenue by Segment
Revenue by Segment
Dayforce recurring Revenue
CapyFin.comPowerpay recurring Revenue
CapyFin.comOther recurring Revenue
CapyFin.comProfessional services Revenue
CapyFin.com Forward Guidance
Dayforce expects continued growth into Q3 and FY 2025 with revenue and free cash flow guidance raised, supported by strong customer adoption and legislative tailwinds.
Positive Outlook
- Q3 total revenue expected between $476M to $486M.
- Q3 Dayforce recurring revenue guided to $329M to $339M.
- Full-year revenue expected to reach $1.955B at the high end.
- Free cash flow margin guidance raised to 13.5%–14.0%.
- Positive impact expected from recent U.S. tax legislation (One Big Beautiful Bill Act).
Challenges Ahead
- Ongoing revenue shift away from professional services to integrator partners.
- Float revenue projected to decline slightly in Q3.
- Potential foreign exchange volatility impacting results.
- Increased restructuring and pension plan termination costs impacting GAAP metrics.
- Dependency on continued go-lives and execution pace to meet targets.